On Friday I mentioned major levels (to me this means quarterly, half-year, or yearly) on 5 main USA indexes: SPY, QQQ, DIA, IWM and NYA. Four out of five tested these levels and held today. The one that was lower, NYA, actually tested and held a 1HS1. The point here is that per The Pivotal Perspective, the market is set up for a decent bounce. This is what a lot of lows look like - all 5 indexes holding major levels. Charts for all 5 below.

SPY held Q1S1
QQQ held Q1S1 and YP (see note above)
DIA held Q1S1
IWM held YS1 despite dipping below intraday
NYA held 1HS1

Fittingly, the 3 leaders held quarterly levels, and the weaker indexes IWM and NYA are already under their Q1S1s and on YS1 and 1HS1 respectively.

That said, only QQQ is above any pivot, and even that is a bit suspect since the NQ futs and NDX cash are below well below their YPs. This pesky discrepancy in pivots this year is due to the 8/24 spike low on the ETFs, so we'll just have to watch and deal with it. To avoid losing money, it is usually best to be long above pivots and flat / hedged / short when the asset is below all pivots. When conditions are mixed, ie above 2 pivots and below 2, then often best to be lightly positioned or use other indicators for an edge.

This means QQQ is best choice for longs, but watch the NDX cash YP and NQ YP if playing the bounce. After such a drop a bounce is the more likely possibility, then we'll have to see how far it gets and any damage done on the next drop. It will take quite a rally for other indexes to get above any pivot this month. SPY will need to clear and hold the 1/6 high just above 200 to do that.